Term
| ABC began the year with $100 in "Supplies". During the year, they purchased $1,000 in supplies but recorded the costs in "Supplies Expense". At the end of the year, ABC does a physical inventory of supplies and discovers they have $200 in supplies on hand. |
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Definition
Debit Supplies 100
Credit Supplies expense 100 |
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Term
| ABC began 2005 with $500 in Prepaid Insurance Premiums for the month of January and February. they paid their annual insurance bill for 12 months coverage for $3,600 and increased the account "Prepaid Insurance". |
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Definition
Debit Insurance Expense 1500
Credit Insurance payable 1500 |
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Term
| ABC Company borrowd $60,000 on March 31,2005 at 10% interest. The interest payable every quarter starting July 1. ABC made and recorded all their interest payments during 2005. The last quarter's 2005 interest payment will be made on January 1, 2006 |
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Definition
Debit Interest Expense 1500
Credit Interest Payable 1500 |
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Term
| ABC Company employees earm $20,000 per month. They are paid on the 1st and the 16th of every month. Record earned but unpaid wages as of December 31, 2005 |
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Definition
Debit Wages Expense 10,000
Credit Wages Payable 10,000 |
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Term
ABC purchased a truck on July 1 2005 for $50,000. The estimated residual value is $5,000 and the estimated life is 5 years. ABC uses the Straight line Depreciation. Record the depreciation.
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Definition
cost - residual value(1/Useful life)
Debit Depreciation Expense 4500
Credit Accumulated Depreciation 4500 |
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Term
ABC sales were $500,000 it estimates its uncollectibles are 1% of sales.
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Definition
Percent of sales
Sales(Percent)
Debit Bad Debts Expense 5000
Credit Allowance 5000 |
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Term
| ABC Company lends a supplier $20,000 on July 1 at 10% interest. The supplier has not made any payments but will be making a payment in January of next year. |
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Definition
Debit Interest Receivable 1000
Credit Interest Revenue 1000 |
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Term
| DEF Company borrowed $60,000 on November 1, 2005 at 10% interest |
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Definition
Debit Interest Expense 1000 Credit Interest Payable 1000 |
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Term
| DEF Company has an ending accounts receivable balance of $50,000. the allowance account before the adjusting entry is preppared with a $500 debit balance. DEF estimates based on AGING that its uncollectibles will be 4% of accounts receivable. Recording the adjusting entry. |
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Definition
Debit Bad Debts expense 2500
Credit Allowance 2500 |
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Term
| Revenue, Expense, and Dividends Declared accounts are |
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Definition
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Term
| Assets Liability and Contributed Capital are |
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Definition
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Term
| DEF began the year with $100 in "supplies". During the year they purchased $900 in supplies and recorded the costs in "Supplies" . At the end of the year , ABC dose a physical inventory of supplies and discovers they have $200 in Supplies on hand. |
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Definition
Debit Supplies Expense 800
Credit Supplies 800
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Term
| Allowance for doubtful accounts |
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Definition
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Term
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Definition
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Term
| DEF began on March 1, 2005. They paid their annual insurance bill for 12 months coverage for $3,600 and increased the account "Insurance Expense". Record the adjusting entry at december 31, 2005 |
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Definition
Debit Pre-Paid Insurance 600
Credit Insurance Expense 600 |
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Term
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Definition
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Term
Closing Entries
Dividends Declared
Supplies Expense
Sales
Sales Returns and Allowances |
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Definition
Credit Dividend Temporary Account
Credit Expense Temprary Account
Debit Revenue Temporaty Account
Credit Contra Revenue Temporary Account
All go to Retained Earnings |
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Term
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Definition
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Term
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Definition
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Term
| money on account that got paid to the bank directly |
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Definition
Add to the book side
Debit Cash
Credit Accounts Receivable |
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Term
| Service charge from the bank |
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Definition
Less on the books
Debit Mis.
Credit Cash |
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Term
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Definition
Less on the books side
Debit Accounts Receivable
Credit Cash |
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Term
In a stock dividened a corporation issued 1,000 shares of its $10 par common stock when the stock market price was $25 a share journal entry
Assuming the 1,000 shares represents 10% |
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Definition
Small (value dividend an market price)
Debit Retained Earnings
Credit Common Stock
Credit APIC |
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Term
In a stock dividened a corporation issued 1,000 shares of its $10 par common stock when the stock market price was $25 a share journal entry
Assuming the 1,00 shares represent 100% |
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Definition
Large (Only par value )
Debit Retained Earnings
Credit Common Stock |
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Term
| Treasury Stock: Issued 10,00 shares of $1 par common stock at $5 per share |
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Definition
Debit Cash 60,000
Credit Common Stock 10,000
Credit APIC 50,000 |
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Term
Purchased 900 shares of its $1 par common stock at $7 per share
Sold 800 shares of treasury stock at $12 per share |
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Definition
Debit Treasury Stock (9000*7) 6300
Credit Cash(9000*7) 6300
Debit (800*12) 9600
Credit APIC 4000
Credit Treasury (800*12) 5600 |
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Term
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Definition
add on the Book side
Debit Cash
Credit Interest Revenue |
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Term
Turnberry earned net income of $60750 durning the year 2006. On December 15, Turnberry declared an annual cash divedend on its 4.5% preferred stock (10,000 shares with total par of $ 50,000) and a .50 cent per share divedned on its 25,000 common shares. Divendends were paid on Jan 4, 2007
How much did Retained Earnings decrease or decrease during 2006 |
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Definition
Declaration: 4.5*50,000=2250 +
.5*25,000=12500
=14750
Debit Dividends Declared
Credit Dividends Payable
Payment of Cash dividend
Debit Dividends Payable
Credit Cash
NI-Dividends 60750-14750=46,000 increase |
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Term
| Bordon issued 7% 500,000 bond at 87 when the effective interest was 9%. Bordon will pay interest anally on Dec 31 |
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Definition
Issuance of the bond
Debit Cash (500,000*.87) 435000
Debit Discount on Bond 65,000
Credit Bond payable 500,000
First Interest Payment
Debit Interest Expense (435,000*9%) 39,150
Credit Discount 4,150
Cash (500,000*7%) 35,000
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Term
| Grocery Corporation received $300328 for $250,00 11% bonds issued on January 1, 2008 at a market interest rate 8%. The bond statedthat interest would be paid each January 1 and that they mature on January 1 2018. assume Grocery Corpoation uses the effective- interest method to amortize the bond premium |
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Definition
Prepare bond Issuance
Debit Cash 300,328
Credit Premium 50,328
Credit Bonds Payable 250,000
Interest accrual on December 31, 2006
Debit Interest Expense (300,328*8%) 24026
Debit Premium on Bonds 3474
Credit (25,000*11%) 27,500 |
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Term
On Jan 2 2004 Sale or Disposal of a long lived asset:
Purchased fixtures 10,000 expected 5 years estimated $1,000 Use Double declining balance. On Sep 30, 2005 sold fixtures for 800 |
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Definition
10,000-0 (2/5) D/E=4000 AD=4000 BV10,000-4000=6000
2nd yrs. 6000(2/5)(9/12)=D/E1800 A/D=5800 BV=4200
800-4200=<3400>
Debit Cash 800
Debit Accumulated depreciation 5800
Debit loss 3400
Credit Fixtures 10000 |
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Term
| How do you find Net accounts Receibles |
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Definition
| Account Receivables - allowance |
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Term
The Seller
Allowance granted by Seller |
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Definition
Debit Sales Returns & Allowance
Credit Accounts Receivable |
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Term
Seller
Payment made by Buyer to Seller |
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Definition
Debit Cash
Debit Discount
Credit Account Receivable |
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Term
Buyer
Sale from Buyer to Seller |
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Definition
Debit Inventory
Credit Accounts Payable |
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Term
Buyer
Allowance granted by seller |
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Definition
Debit Account Payable
Credit Allowance |
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Term
Buyer
Payment made by buyer to seller |
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Definition
debit Accounts payable
Credit Intentory |
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